Investors buy in to Restore
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AIM-listed relocation and document management firm Restore (LON:RST) has seen its share price climb by 10.39% to 293.64p (as of 13:30 GMT) after profits before tax jumped 20% for the year ended 31st December. Revenues rose by 14%, driven by a strong performance in document management.
Chief executive Charles Skinner commented: “We are pleased to report another strong performance in 2018, with a ninth successive year of double-digit growth in earnings per share.
“The acquisition of TNT Business Solutions has provided the Group with significant additional growth opportunities, particularly in the public sector, where many entities still undertake records management and other services we provide in-house.
“As I hand over to Charles Bligh after ten years as Chief Executive, Restore remains well positioned to build upon the gains made in 2018, with the Group’s broad base of recurring revenues and strong cash generation providing a stable platform for continued growth.
“Trading since the start of the year has been in line with the Board’s expectations“.
The rise today certainly does not make up for the fall in price so far this year, by a long way. Yet outlook and results seem on the face of it very good. Why was Mr market so grumpy regarding a stock with recurring revenues. For example documents regarding fostering of children have to be retained for 100 years.